Revision for Immaterial Misstatements

9 Months Ended

Sep. 30, 2023

Quarterly Financial Information Disclosure [Abstract]

As disclosed in Note 1 – Description of Business, subsequent to the issuance of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, during the six months ended June 30, 2023, the Company identified misstatements related to the elimination of intercompany balances and right of return assets. Although the Company concluded that these misstatements were not material, either individually or in the aggregate, the Company elected to revise its previously issued consolidated financial statements to correct for these misstatements. The revision to the accompanying unaudited condensed consolidated balance sheets, condensed consolidated statements of comprehensive income (loss), and condensed consolidated statements of cash flows and related disclosures in Note 3 – Balance Sheet Components and Note 13 – Net (Loss) Income to Common Stockholders are detailed in the tables below.

As of December 31, 2021 and June 30, 2022, accumulated deficit was understated by $4.3 million and $6.9 million, and as such, previously reported stockholders’ equity of $302.3 million and $352.3 million was revised to $298.0 million and $345.4 million, respectively. For the fiscal year ended December 31, 2022, net income was overstated $0.2 million. As of March 31, 2023, accumulated deficit was overstated $4.7 million, and as such, previously reported stockholders’ equity of $147.7 million was revised to $152.4 million. There were no other changes to the consolidated statements of stockholders’ equity that have not otherwise been reflected in the condensed consolidated balance sheets and condensed consolidated statements of comprehensive income (loss) as detailed in the tables below.


	As of December 31, 2022
Condensed Consolidated Balance Sheet (in thousands)	As Previously Reported		Adjustment		As Revised
Inventories	$	116,430	$	(6,774)	$	109,656
Prepaid expenses and other current assets	$	26,698	$	950	$	27,648
Total current assets	$	789,099	$	(5,824)	$	783,275
TOTAL ASSETS	$	1,008,907	$	(5,824)	$	1,003,083
Accounts payable	$	30,335	$	(1,868)	$	28,467
Income tax payable	$	962	$	467	$	1,429
Total current liabilities	$	73,115	$	(1,401)	$	71,714
TOTAL LIABILITIES	$	837,431	$	(1,401)	$	836,030
Accumulated deficit	$	(374,328)	$	(4,423)	$	(378,751)
Total stockholders' equity	$	171,476	$	(4,423)	$	167,053
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,008,907	$	(5,824)	$	1,003,083


	Three Months Ended September 30, 2022
Condensed Consolidated Statement of Comprehensive Income (Loss) (in thousands)	As Previously Reported		Adjustment		As Revised
Cost of sales	$	27,217	$	212	$	27,429
Gross profit	$	61,575	$	(212)	$	61,363
Loss from operations	$	(4,141)	$	(212)	$	(4,353)
Loss before provision for income taxes	$	(690)	$	(212)	$	(902)
Net income (loss)	$	131	$	(212)	$	(81)
Comprehensive loss	$	(1,505)	$	(212)	$	(1,717)


	Nine Months Ended September 30, 2022
Condensed Consolidated Statement of Comprehensive Income (Loss) (in thousands, except per share amounts)	As Previously Reported		Adjustment		As Revised
Cost of sales	$	82,577	$	2,878	$	85,455
Gross profit	$	185,166	$	(2,878)	$	182,288
Loss from operations	$	(20,515)	$	(2,878)	$	(23,393)
Income before provision for income taxes	$	42,439	$	(2,878)	$	39,561
Net income	$	40,569	$	(2,878)	$	37,691
Comprehensive income	$	35,101	$	(2,878)	$	32,223
Net income per share - Basic	$	0.27	$	(0.02)	$	0.25
Net loss per share - Diluted	$	(0.20)	$	(0.02)	$	(0.22)


	Nine Months Ended September 30, 2022
Condensed Consolidated Statement of Cash Flows (in thousands)	As Previously Reported		Adjustment		As Revised
Net income	$	40,569	$	(2,878)	$	37,691
Changes in operating assets and liabilities:
Inventories	$	(75,007)	$	2,878	$	(72,129)